BoG revokes licenses of two local banks

The Bank of Ghana has revoked the licenses of Heritage and Premium Banks, bringing the total number of collapsed indigenous banks to nine.

BoG revokes licenses of two local banks

In 2018, the licenses of five banks were revoked and merged to form the Consolidated Bank of Ghana while in 2017, GCB took over two banks.

Premium Bank was found to be insolvent and had a capital adequacy ratio of “-125.2%.”

Heritage Bank on the other hand “obtained its license with questionable sources of capital."

In addition, both banks have not also been able “to meet the minimum capital requirement.”

The latest development in the banking sector was made known on Friday by the Governor of the Bank of Ghana, Dr. Ernest Addison.

The revocation of the licenses of the two banks come after the expiration of the deadline for banks to recapitalize by at least GHc400 million by December 31, 2018.

The governor also confirmed earlier reports that Stanbic Bank will now take over deposits of customers of the Bank of Baroda.

And GN bank has been downgraded to a savings and loans company.

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